General insurance covers non-life insurance, including personal and commercial lines. Personal lines cover personal property and liability, while commercial lines protect businesses. Auto and homeowners insurance are common types, with property and casualty coverage. Commercial lines include auto and general liability, with claims coverage for premises, professional, and product liability.
General insurance typically refers to any non-life insurance coverage. This includes both personal lines insurance and commercial lines insurance. Personal lines insurance includes coverages used to protect an insured from loss of or damage to personal property or damage for which the policyholder may be held personally liable. Commercial lines insurance protects a business from loss of its business property or damage for which the business may be held liable.
Personal auto insurance and homeowners insurance are the most common types of general insurance. Auto and homeowners policies may include both property and casualty coverage. Property coverage pays for the loss of the policyholder’s property, while casualty coverage pays for damages for which the policyholder is responsible. For example, if an insured person accidentally drives their personal car into the side of a building owned by someone else, their insurance would pay for damage to their vehicle through their property coverage and damage to the building through their damage coverage. .
In many places, auto insurance is required to operate a vehicle. If the vehicle is used by a business, the driver is typically covered under the company’s commercial auto policy. If the vehicle is personally owned, the driver would be covered under the owner’s personal auto policy.
Homeowners insurance is another type of general insurance. Homeowners insurance pays for damage to a home and personal property owned by an insured person through property coverage. It also offers, through its casualty coverage, protection against lawsuits that may occur as a result of damages inadvertently caused by the policyholder or other members of their household. If a home is damaged by a covered peril, such as a burst pipe, the policy’s property coverage would pay for the repairs. If the minor child of the insured person accidentally threw a ball through a neighbor’s window, the policy’s accident coverage would pay to replace the neighbor’s window.
Renters insurance is another type of general insurance. It is similar to homeowners insurance in that it covers the policyholder’s personal property while also providing liability coverage for damages for which the policyholder may be liable, including damage caused by to the house that is rented. If a renter leaves a furnace running and causes a fire that damages the rental property, the renter’s policy would pay for damage to the home caused by the insured person. It would also pay for damage to the tenant’s personal belongings that occurred in the fire.
Commercial lines insurance is general insurance similar to personal lines insurance in that it can include property and casualty coverages. The difference between personal lines and business lines insurance is that personal lines protect people who are engaged in their own non-work related businesses, as well as the property they own, and commercial lines coverages protect to a business from the shares of its employees and from the assets of the business. The most common types of commercial general insurance are commercial auto liability and commercial general liability.
In addition, there are several other categories of commercial lines of general insurance. There are claims coverages that include premises liability, professional and product liability, and full operations liability. Premises liability covers visitors who may be injured on the insured’s property. Professional liability pays for damages caused to a client of a specially trained industry expert whose services were substandard or inaccurate in any way. Completed Products and Operations Liability pays for damages caused by a product or service that the insured completed and gave up, but later caused damage to a customer.
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